How Air Products uses the integration of SAP HCM to manage their workforce talent

1. Talent ManagementEnabled by SAPat Air Products and Chemicals, Inc. Sherryanne H. Meyer Manager, Employee Systems 22 September 2010

3. 40 countries

4. 19,000 employees

5. A Fortune 500 company

6. Innovative

7. Responsible

9. “One Company” Philosophy Supported by One Global System Compensation Self Services Appraisals Payroll Benefits Org Management Personnel Admin Structural Security 4 ECC5.0, Portal 5.0,Netweaver 6.40, ITS

10. 5 AP Portal – One Stop for Managing Talent…

11. Global Processes in 25 Countries UK Ireland Belgium Netherlands Germany France Poland Czech Republic Slovakia Canada United States Spain, Italy, Portugal Israel Egypt Brazil Indonesia, Singapore, Malaysia China, Hong Kong Japan, Korea, Taiwan 6 6

12. Deliver the Difference Defines Our Corporate Strategic Goals 7 Personal Accountability/Initiative Change Innovation Integrity Ethical Conduct Respect for Others/Values Differences Environmental Health and Safety Focus Teamwork Problem Solving / Decision Making Communication/Openness Work Process Focus Customer/Internal Client Focus

13. …and Management of these Objectives is enabled with SAP 8

15. Have relationships to specific Organization Units

16. Have PD Profiles which control which positions & employee they see and what activities they can complete

17. Are limited by the security profile to performing activities and viewing sensitive data only at the point in time in which the employee reported to the manager.Manager’s Organization

18. Performance Enhancement Timeline 10

19. FY-Q1: Setting Objectives 11 Predefined Qualification Objects align with Corporate Goals Text boxes allow the manager to provide specific coaching When objectives are set – and later, when development plan has been completed – Compliance with the process is monitored

20. FY-Q2 and Q3 – Succession Planning Enabled by Organizational Structure in SAP Supported by Appraisal documents Enhanced via our Relative What and How Processes During RWH discussions the following are tracked and maintained: Grade Potential within Five Years VP Potential Top Talent International Experience Cross function/business area experience At Risk 12

21. FY-Q2 and FY-Q3: Performance Against Objectives - What And How 13

22. End of FY-Q3  Beginning of FY-Q4: Managers Conclude Performance Feedback 14 Predefined Performance Levels are assigned to each objective – and the manager uses this to deliver a definitive performance assessment.

23. Once Completed, the Employee has a Record of His/Her Performance in ESS 15

24. FY-Q1- Compensation based on Performance Base salary increase decisions take into consideration: Individual Performance as assessed in terms of relative assessment Compa-Ratio – which is each employee's salary relative to the defined salary range Budget for overall salary increases for the department Specifics on the “HOW” and the “WHAT” are derived from the Appraisal feedback. High HOW Good Low 16 Low Good High WHAT

25. Lessons Learned Languages – You can deliver an appraisal form in local language – but consider the entire process – how are actual discussions handled? And printed languages always tend to be subject to variations in interpretation Cultural changes – Check your meanings…manage change…ensure local and global acceptance Ownership model – ensure continued care and feeding of your process as it is enabled in the system Compliance – internal and external requirements The system does not replace our Performance Enhancement process – but, rather, enhances it 17

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